If a person had given the power to stop the payment of chqs by present in his bank. after this condition, chq issuaer can stop the payment of chq. the above sec. can apply on the issuaer.
2007-01-10 15:37:02 · 3 answers · asked by mbbs 1 in Politics & Government ➔ Law & Ethics
When a cheque has been issued in discharge of a debt - stop payment will not circumvent Sec 138 of NIA. The applicability of this Sec is very wide, to protect the interest of the payee / creditor. The sec is intended to bring in more discipline to the cheque system.
2007-01-12 12:51:37 · answer #1 · answered by Alrahcam 4 · 0⤊ 0⤋
You must have been more specific.
Your suggestion is misconceived. This way the provision becomes illusory.
No doubt there has been misuse and abuse of the provision but it is only to safeguard the interests of the business community and to provide a conducive atmosphere for the business community.
Stop payment can only be made when the payment has already been made by other means or adjusted. But it is a matter to be considered at the time of the trial of the case. Prima Facie when a cheque is dishonoured it is presumed under Section 118 of the Evidence Act that the drawee is under a liability to oblige a legally enforceable debt. Initiation of proceedings under Section 138 of the N.I.Act is preceeded by a legal notice to the drawee. It is always open for the drawee to reply to the said notice and contend that the payment has already been made or adjusted.
2007-01-11 04:03:44 · answer #2 · answered by thiru 2 · 0⤊ 0⤋
Yes.Provisions of S-138 of N.I.Act is attracted in case of stop payment also.
2007-01-10 15:48:09 · answer #3 · answered by dirty harry 2 · 0⤊ 0⤋